KfW IPEX-Bank: New A350-900 for Singapore Airlines

KfW IPEX-Bank and EastMerchant have successfully closed the sale and lease-back of one Airbus A350-900 aircraft between Singapore Airlines and Crianza Aviation, the Korean aircraft lessor.

The transaction features a novel, multi-layered financing structure with a Balthazar covered senior loan arranged and provided by KfW IPEX-Bank which is complemented by Korean mezzanine debt as well as equity from Korean investors together with Crianza.

Balthazar is a non-payment insurance product launched by Airbus, Marsh and a pool of highly rated insurers in 2019 to support lenders’ and investors’ long term financing for Airbus aircraft. “Even though the aviation industry is currently heavily restricted due to the spread of COVID-19, we are anticipating demand to rise again after the pandemic has subsided” explains Andreas Ufer, member of the KfW IPEX-Bank Management Board. “The A350 is a fuel-efficient, environmentally friendly aircraft of the Airbus family, representing state-of-the-art technology and is expected to be one of the widebody aircraft shaping the future of air travel.”